Part A—General Provisions
§191. "Packer" defined
When used in this chapter the term "packer" means any person engaged in the business (a) of buying livestock in commerce for purposes of slaughter, or (b) of manufacturing or preparing meats or meat food products for sale or shipment in commerce, or (c) of marketing meats, meat food products, or livestock products in an unmanufactured form acting as a wholesale broker, dealer, or distributor in commerce.
(Aug. 15, 1921, ch. 64, title II, §201,
Editorial Notes
Amendments
1976—
§192. Unlawful practices enumerated
It shall be unlawful for any packer or swine contractor with respect to livestock, meats, meat food products, or livestock products in unmanufactured form, or for any live poultry dealer with respect to live poultry, to:
(a) Engage in or use any unfair, unjustly discriminatory, or deceptive practice or device; or
(b) Make or give any undue or unreasonable preference or advantage to any particular person or locality in any respect, or subject any particular person or locality to any undue or unreasonable prejudice or disadvantage in any respect; or
(c) Sell or otherwise transfer to or for any other packer, swine contractor, or any live poultry dealer, or buy or otherwise receive from or for any other packer, swine contractor, or any live poultry dealer, any article for the purpose or with the effect of apportioning the supply between any such persons, if such apportionment has the tendency or effect of restraining commerce or of creating a monopoly; or
(d) Sell or otherwise transfer to or for any other person, or buy or otherwise receive from or for any other person, any article for the purpose or with the effect of manipulating or controlling prices, or of creating a monopoly in the acquisition of, buying, selling, or dealing in, any article, or of restraining commerce; or
(e) Engage in any course of business or do any act for the purpose or with the effect of manipulating or controlling prices, or of creating a monopoly in the acquisition of, buying, selling, or dealing in, any article, or of restraining commerce; or
(f) Conspire, combine, agree, or arrange with any other person (1) to apportion territory for carrying on business, or (2) to apportion purchases or sales of any article, or (3) to manipulate or control prices; or
(g) Conspire, combine, agree, or arrange with any other person to do, or aid or abet the doing of, any act made unlawful by subdivisions (a), (b), (c), (d), or (e).
(Aug. 15, 1921, ch. 64, title II, §202,
Amendment of Section
For termination of amendment by section 942 of
Editorial Notes
Amendments
2002—
Subsec. (c).
1999—Subsec. (b).
1991—Subsec. (c).
1987—
Par. (c).
1976—
1958—
1935—Act Aug. 15, 1921, title V, §503, as added Aug. 14, 1935, inserted "or any live poultry dealer or handler" after "packer" wherever appearing.
Statutory Notes and Related Subsidiaries
Termination Date of 1999 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
§193. Procedure before Secretary for violations
(a) Complaint; hearing; intervention
Whenever the Secretary has reason to believe that any packer or swine contractor has violated or is violating any provision of this subchapter, he shall cause a complaint in writing to be served upon the packer or swine contractor, stating his charges in that respect, and requiring the packer or swine contractor to attend and testify at a hearing at a time and place designated therein, at least thirty days after the service of such complaint; and at such time and place there shall be afforded the packer or swine contractor a reasonable opportunity to be informed as to the evidence introduced against him (including the right of cross-examination), and to be heard in person or by counsel and through witnesses, under such regulations as the Secretary may prescribe. Any person for good cause shown may on application be allowed by the Secretary to intervene in such proceeding, and appear in person or by counsel. At any time prior to the close of the hearing the Secretary may amend the complaint; but in case of any amendment adding new charges the hearing shall, on the request of the packer or swine contractor, be adjourned for a period not exceeding fifteen days.
(b) Report and order; penalty
If, after such hearing, the Secretary finds that the packer or swine contractor has violated or is violating any provisions of this subchapter covered by the charges, he shall make a report in writing in which he shall state his findings as to the facts, and shall issue and cause to be served on the packer or swine contractor an order requiring such packer or swine contractor to cease and desist from continuing such violation. The testimony taken at the hearing shall be reduced to writing and filed in the records of the Department of Agriculture. The Secretary may also assess a civil penalty of not more than $10,000 for each such violation. In determining the amount of the civil penalty to be assessed under this section, the Secretary shall consider the gravity of the offense, the size of the business involved, and the effect of the penalty on the person's ability to continue in business. If, after the lapse of the period allowed for appeal or after the affirmance of such penalty, the person against whom the civil penalty is assessed fails to pay such penalty, the Secretary may refer the matter to the Attorney General who may recover such penalty by an action in the appropriate district court of the United States.
(c) Amendment of report or order
Until the record in such hearing has been filed in a court of appeals of the United States, as provided in
(d) Service of process
Complaints, orders, and other processes of the Secretary under this section may be served in the same manner as provided in
(Aug. 15, 1921, ch. 64, title II, §203,
Editorial Notes
Amendments
2002—Subsecs. (a) to (c).
1976—Subsec. (b).
1958—Subsec. (c).
Statutory Notes and Related Subsidiaries
Change of Name
Act June 25, 1948, as amended by act May 24, 1949, substituted "court of appeals" for "circuit court of appeals".
Executive Documents
Transfer of Functions
Functions of all officers, agencies, and employees of Department of Agriculture transferred, with certain exceptions, to Secretary of Agriculture by 1953 Reorg. Plan No. 2, §1, eff. June 4, 1953, 18 F.R. 3219,
§194. Conclusiveness of order; appeal and review
(a) Filing of petition; bond
An order made under
(b) Filing of record by Secretary
The clerk of the court shall immediately cause a copy of the petition to be delivered to the Secretary, and the Secretary shall thereupon file in the court the record in such proceedings, as provided in
(c) Temporary injunction
At any time after such petition is filed, the court, on application of the Secretary, may issue a temporary injunction, restraining, to the extent it deems proper, the packer or swine contractor and his officers, directors, agents, and employees, from violating any of the provisions of the order pending the final determination of the appeal.
(d) Evidence
The evidence so taken or admitted, and filed as aforesaid as a part of the record, shall be considered by the court as the evidence in the case.
(e) Action by court
The court may affirm, modify, or set aside the order of the Secretary.
(f) Additional evidence
If the court determines that the just and proper disposition of the case requires the taking of additional evidence, the court shall order the hearing to be reopened for the taking of such evidence, in such manner and upon such terms and conditions as the court may deem proper. The Secretary may modify his findings as to the facts, or make new findings, by reason of the additional evidence so taken, and he shall file such modified or new findings and his recommendations, if any, for the modifications or setting aside of his order, with the return of such additional evidence.
(g) Injunction
If the court of appeals affirms or modifies the order of the Secretary, its decree shall operate as an injunction to restrain the packer or swine contractor, and his officers, directors, agents, and employees from violating the provisions of such order or such order as modified.
(h) Finality
The court of appeals shall have jurisdiction, which upon the filing of the record with it shall be exclusive, to review, and to affirm, set aside, or modify, such orders of the Secretary, and the decree of such court shall be final except that it shall be subject to review by the Supreme Court of the United States upon certiorari, as provided in
(Aug. 15, 1921, ch. 64, title II, §204,
Editorial Notes
Codification
Former subsec. (i), which extended the former term "circuit court of appeals", in case the principal place of business of the packer is in the District of Columbia, to the United States Court of Appeals for the District of Columbia, for the purposes of
Amendments
2002—Subsecs. (a), (c), (g).
1984—Subsec. (d).
1958—Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (h).
Statutory Notes and Related Subsidiaries
Change of Name
Act June 25, 1948, eff. Sept. 1, 1948, as amended May 24, 1949, substituted "court of appeals" for "circuit court of appeals", wherever appearing.
Act of June 7, 1934, provided that Court of Appeals in District of Columbia, should hereafter be known as the United States Court of Appeals for the District of Columbia.
Effective Date of 1984 Amendment
Amendment by
§195. Punishment for violation of order
Any packer or swine contractor, or any officer, director, agent, or employee of a packer or swine contractor, who fails to obey any order of the Secretary issued under the provisions of
(1) After the expiration of the time allowed for filing a petition in the court of appeals to set aside or modify such order, if no such petition has been filed within such time; or
(2) After the expiration of the time allowed for applying for a writ of certiorari, if such order, or such order as modified, has been sustained by the court of appeals and no such writ has been applied for within such time; or
(3) After such order, or such order as modified, has been sustained by the courts as provided in
(Aug. 15, 1921, ch. 64, title II, §205,
Editorial Notes
Amendments
2002—
Statutory Notes and Related Subsidiaries
Change of Name
Act June 25, 1948, as amended by act May 24, 1949, substituted "court of appeals" for "circuit court of appeals", wherever appearing in this section.
§196. Statutory trust established; livestock
(a) Protection of public interest from inadequate financing arrangements
It is hereby found that a burden on and obstruction to commerce in livestock is caused by financing arrangements under which packers encumber, give lenders security interest in, or place liens on, livestock purchased by packers in cash sales, or on inventories of or receivables or proceeds from meat, meat food products, or livestock products therefrom, when payment is not made for the livestock and that such arrangements are contrary to the public interest. This section is intended to remedy such burden on and obstruction to commerce in livestock and protect the public interest.
(b) Livestock, inventories, receivables and proceeds held by packer in trust for benefit of unpaid cash sellers; time limitations; exempt packers; effect of dishonored instruments; preservation of trust benefits by seller
All livestock purchased by a packer in cash sales, and all inventories of, or receivables or proceeds from meat, meat food products, or livestock products derived therefrom, shall be held by such packer in trust for the benefit of all unpaid cash sellers of such livestock until full payment has been received by such unpaid sellers: Provided, That any packer whose average annual purchases do not exceed $500,000 will be exempt from the provisions of this section. Payment shall not be considered to have been made if the seller receives a payment instrument which is dishonored: Provided, That the unpaid seller shall lose the benefit of such trust if, in the event that a payment instrument has not been received, within thirty days of the final date for making a payment under
(c) Definition of cash sale
For the purpose of this section, a cash sale means a sale in which the seller does not expressly extend credit to the buyer.
(Aug. 15, 1921, ch. 64, title II, §206, as added
§197. Statutory trust established; poultry
(a) Protection of public interest from inadequate financing arrangements
It is hereby found that a burden on and obstruction to commerce in poultry is caused by financing arrangements under which live poultry dealers encumber, give lenders security interest in, or place liens on, poultry obtained by such persons by purchase in cash sales or by poultry growing arrangements, or on inventories of or receivables or proceeds from such poultry or poultry products therefrom, when payment is not made for the poultry and that such financing arrangements are contrary to the public interest. This section is intended to remedy such burden on and obstruction to commerce in poultry and protect the public interest.
(b) Poultry, inventories, receivables and proceeds held by dealer in trust for benefit of unpaid cash sellers or poultry growers
All poultry obtained by a live poultry dealer, by purchase in cash sales or by poultry growing arrangement, and all inventories of, or receivables or proceeds from such poultry or poultry products derived therefrom, shall be held by such live poultry dealer in trust for the benefit of all unpaid cash sellers or poultry growers of such poultry, until full payment has been received by such unpaid cash sellers or poultry growers, unless such live poultry dealer does not have average annual sales of live poultry, or average annual value of live poultry obtained by purchase or by poultry growing arrangement, in excess of $100,000.
(c) Effect of dishonored instruments
Payment shall not be considered to have been made if the cash seller or poultry grower receives a payment instrument which is dishonored.
(d) Preservation of trust benefit by seller or poultry grower
The unpaid cash seller or poultry grower shall lose the benefit of such trust if, in the event that a payment instrument has not been received, within 30 days of the final date for making payment under
(e) Definition of cash sale
For the purpose of this section, a cash sale means a sale in which the seller does not expressly extend credit to the buyer.
(Aug. 15, 1921, ch. 64, title II, §207, as added
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 90 days after Nov. 23, 1987, see section 12 of
§197a. Production contracts
(a) Right of contract producers to cancel production contracts
(1) In general
A poultry grower or swine production contract grower may cancel a poultry growing arrangement or swine production contract by mailing a cancellation notice to the live poultry dealer or swine contractor not later than the later of—
(A) the date that is 3 business days after the date on which the poultry growing arrangement or swine production contract is executed; or
(B) any cancellation date specified in the poultry growing arrangement or swine production contract.
(2) Disclosure
A poultry growing arrangement or swine production contract shall clearly disclose—
(A) the right of the poultry grower or swine production contract grower to cancel the poultry growing arrangement or swine production contract;
(B) the method by which the poultry grower or swine production contract grower may cancel the poultry growing arrangement or swine production contract; and
(C) the deadline for canceling the poultry growing arrangement or swine production contract.
(b) Required disclosure of additional capital investments in production contracts
(1) In general
A poultry growing arrangement or swine production contract shall contain on the first page a statement identified as "Additional Capital Investments Disclosure Statement", which shall conspicuously state that additional large capital investments may be required of the poultry grower or swine production contract grower during the term of the poultry growing arrangement or swine production contract.
(2) Application
Paragraph (1) shall apply to any poultry growing arrangement or swine production contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this section.
(Aug. 15, 1921, ch. 64, title II, §208, as added
Editorial Notes
References in Text
The date of the enactment of this section, referred to in subsec. (b)(2), is the date of enactment of
Codification
Section 11005 of
Statutory Notes and Related Subsidiaries
Effective Date
Enactment of this section and repeal of
§197b. Choice of law and venue
(a) Location of forum
The forum for resolving any dispute among the parties to a poultry growing arrangement or swine production or marketing contract that arises out of the arrangement or contract shall be located in the Federal judicial district in which the principle part of the performance takes place under the arrangement or contract.
(b) Choice of law
A poultry growing arrangement or swine production or marketing contract may specify which State's law is to apply to issues governed by State law in any dispute arising out of the arrangement or contract, except to the extent that doing so is prohibited by the law of the State in which the principal part of the performance takes place under the arrangement or contract.
(Aug. 15, 1921, ch. 64, title II, §209, as added
Editorial Notes
Codification
Section 11005 of
Statutory Notes and Related Subsidiaries
Effective Date
Enactment of this section and repeal of
§197c. Arbitration
(a) In general
Any livestock or poultry contract that contains a provision requiring the use of arbitration to resolve any controversy that may arise under the contract shall contain a provision that allows a producer or grower, prior to entering the contract 1 to decline to be bound by the arbitration provision.
(b) Disclosure
Any livestock or poultry contract that contains a provision requiring the use of arbitration shall contain terms that conspicuously disclose the right of the contract producer or grower, prior to entering the contract, to decline the requirement to use arbitration to resolve any controversy that may arise under the livestock or poultry contract.
(c) Dispute resolution
Any contract producer or grower that declines a requirement of arbitration pursuant to subsection (b) has the right,2 to nonetheless seek to resolve any controversy that may arise under the livestock or poultry contract, if, after the controversy arises, both parties consent in writing to use arbitration to settle the controversy.
(d) Application
Subsections (a) 1 (b) and (c) shall apply to any contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of the Food, Conservation, and Energy Act of 2008.
(e) Unlawful practice
Any action by or on behalf of a packer, swine contractor, or live poultry dealer that violates this section (including any action that has the intent or effect of limiting the ability of a producer or grower to freely make a choice described in subsection (b)) is an unlawful practice under this chapter.
(f) Regulations
The Secretary shall promulgate regulations to—
(1) carry out this section; and
(2) establish criteria that the Secretary will consider in determining whether the arbitration process provided in a contract provides a meaningful opportunity for the grower or producer to participate fully in the arbitration process.
(Aug. 15, 1921, ch. 64, title II, §210, as added
Editorial Notes
References in Text
The date of the enactment of the Food, Conservation, and Energy Act of 2008, referred to in subsec. (d), is the date of enactment of
Codification
Section 11005 of
Statutory Notes and Related Subsidiaries
Effective Date
Enactment of this section and repeal of